Products, Services and Branding Strategy Session-5

Products, Services, and Experiences Market offerings may consist of a combination of goods and services Experiences are used to differentiate offerings Levels of Product and Services Core benefit, Basic, Expected and augmented and Potential product Product and Service Classifications Consumer products and industrial products

Product Levels PRODUCT LEVELS 1. CORE PRODUCT 2. BASIC PRODUCT 3. EXPECTED PRODUCT 4. AUGMENTED PRODUCT 5. POTENTIAL PRODUCT

Example Product or service or brand Core Product Actual Product Augmented Product Ford Ikon Freedom to travel A motor car ? Budget/No Frills Airline e.g. Jetlite, Go Air An airline journey Food bought during your flight Nike Association with the best in sports. Nike online allows you to personalise your trainers

Example: Hotel Core Rest Sleep Basic Bed Bathroom Expected Hygiene Service Augmented Beech Hotel, Brand, Star Hotel Potential Future Product

Product Classification Consumer products: Durability & Tangibility Non Durable: eg. Soap, beer Durable: TV, Refrigerator. Services: Intangible, eg: Air Travel, Hotel, Telecom

Consumer-Goods Classification Convenience Shopping Specialty Unsought

Industrial Goods Classification Materials and parts : Raw Materials [ farm & natural] and Manufactured materials and parts [ component material and component parts Capital items Installation and Equipments Supplies and services Operating Supplies and Maintenance and repair items Maintenance and repair service & business advisory service

Product Differentiation Form- Shape Size Features Customization Performance Conformance Durability Reliability Reparability

Product Line Analysis Product Mix Product Line Product Width Consistency

Product Line Analysis Two Aspects Sales and Profit Market Profile

Product Line Length Profits can increase either if product line is shorten or added. It can be lengthens in two ways : 1. Line Stretching : Down market stretch, Up Market stretch, Two way stretch 2. Line Filling :by adding more items on product line

Product Line Modernization Part Basis/Overall Modernization is carried rapidly, eg micro-processor companies Too early might damage sale of current line and too late competition might take advantage. Vox Wagan Beatle

Establishing Image driver for the line[ Surya classic for Surya brand] Featuring and Pruning Line Featuring Establishing Image driver for the line[ Surya classic for Surya brand] Issue to promote weak items or safe guard strong ones Pruning Weak items Production demands

Branding Coke, Toyota, Surya: What comes to your mind? Attributes Benefits Values Culture Personality User Marketing is also converting simple products and Services into brands.

Brands with strong equity have many competitive advantages: Why Branding Brands with strong equity have many competitive advantages: High consumer awareness will reduce marketing cost Strong brand loyalty Helps when introducing new products Less susceptible to price competition More Trade Leverage in bargaining with distributors and retailers [Bajaj Bikes in Nepal]

Brand Name Decision Product benefits Product Qualities Easy to pronounce recognize and remember Distinctive Should not carry poor meanings in other countries and languages Blanket Family Names

Brand Strategy Decision Line Extension: Minor Changes to Existing Products Brand Extension: Successful brands help introduce new products Multibrands: Multiple brands into a product category New brands: New product brand Co brands

Labeling and Packaging Identifies the product Describes the product Promotes the product Legal requirement

Packaging A Marketing Tool. Garnishing the product. Important Marketing Tool

Shei Shei